See which of your credit facilities are costing you the most money.
This is by far the most important thing you should do when you want to reduce your debt. Usually in most of the cases, this would be credit cards and overdraft facilities. They also usually have some of the highest interest rates.
By making use of either one can easily get into debt, mainly due to the fact that it can be rather difficult to control your spendings.
Why would it be difficult to control my spending?
Well because the money is always available, and you can use it whenever you need it or want to.
Another way that you can effectively reduce and in the end get rid of all your debt is through debt consolidation. Whether you have credit card debt, personal loans or overdrafts, this would be your answer.
There are of course two main options you can choose from when it comes to consolidating your debt; unsecured loans & secured loans.
An Unsecured Loan
A loan that is supported only by your credit worthiness, and not by a type of collateral such as property. To be approved for an unsecured loan you generally need to have a high credit score.
A Secured Loan
A loan that is protected by an asset, like your car or home. The advantage of a secured loan is that there will be a lower interest rate.